Cayman Net News- The multi-billion dollar collapse of two Cayman Islands hedge funds managed by investment giant Bear Stearns is set to continue to make headlines into the New Year.<\/p>\n
As 2007 drew to a close, news was released that the US Attorney\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s Office and the Securities and Exchange Commission (SEC) were looking at whether one of Bear Stearns\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2 senior managing directors, Ralph Cioffi, continued to promote the now-bankrupt funds while removing US$2 million of his own investments from them. The allegation being that this act amounted to insider trading.<\/p>\n
Banking giants Barclays have now also joined the chase, filing claims for over CI$400 million, which allege Bear Stearns sold bad debt before they would have to be written down as a loss. Barclays alleges fraud, conspiracy and a breach of fiduciary duty.<\/p>\n
Other groups are filing arbitration claims, a course they regard as more straightforward, quicker and not subject to complex appeal processes or legal delaying tactics, in order to recover lost investments.<\/p>\n